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The prime minister has backed in a much larger than expected budget surplus for the last financial year, believing Australians will welcome the news even as their own budgets continue to take a battering.
- New figures from the federal Finance Department show the surplus at the end of May sitting at $19 billion
- Prime Minister Anthony Albanese says "it will take pressure off inflation"
- The Opposition says there is a surplus "because the government is receiving more tax dollars"
Figures printed in the May budget forecast a surplus of $4.2 billion for the 2022-2023 financial year.
But new figures from the federal Finance Department show government coffers will be significantly better off, with the surplus at the end of May sitting at $19 billion.
That dramatic improvement is a result of strong commodity prices, and higher than expected income and company tax revenue.
The final budget outcome for the financial year remains to be seen.
"The fact that we've turned a $78 billion deficit that was forecast under the Liberal National Party government just over a year ago into a surplus that's in excess of $4 billion is a positive thing," Anthony Albanese said.
"It will take pressure off inflation, and the government's been determined to do that."
Millions of Australians are grappling with cost-of-living pressures, and the prime minister was asked how he thought Australians would perceive the commonwealth budget's health compared to their own household strains.
"I believe that Australian families will look at the federal budget and say it is good that we have a government that is putting in place responsible budget management in order to put that downward pressure on inflation," Mr Albanese said.
"They know that responsible economic policy from the federal government is important and has a flow-on impact that is positive for families."
The Federal Opposition rubbished that suggestion.
"Labor might be licking its lips with a budget surplus, but Australian households are on their knees in pain," Shadow Climate Change and Energy Minister Ted O'Brien said.
"Labor should not confuse dumb luck with good policy.
"If it were good policy, they'd be forecasting surpluses well into the future — but that's not the case.
"Where there's a surplus, it's because the government is receiving more tax dollars, they are taxing companies, they are taxing the Australian people."
The start of a new financial year marks the start of a number of measures from the federal government aimed at easing the cost-of-living pressures.
Among the policies are energy relief payments for millions of Australian households, and increases to childcare subsidies.